[amp_mcq option1=”Rs 8,200.00″ option2=”Rs 16,000.00″ option3=”Rs 10,000.00″ option4=”Rs 1,562.50″ correct=”option1″]
The correct answer is A. Rs 8,200.00.
The present value of cash flows is calculated by using the following formula:
Present value = Future value / (1 + r)^n
where:
- Future value is the amount of money you expect to receive in the future
- r is the interest rate
- n is the number of years until you receive the money
In this case, the future value is Rs 5000, the interest rate is 3.2%, and the number of years is 1.
Plugging these values into the formula, we get:
Present value = Rs 5000 / (1 + 0.032)^1 = Rs 8,200.00
Option B is incorrect because it is the future value, not the present value.
Option C is incorrect because it is the amount of money you would receive if you invested Rs 5000 at 3.2% interest for 1 year.
Option D is incorrect because it is the present value of Rs 5000 if you invested it at 3.2% interest for 0 years.